Namibia: Erongored Consumers to Tighten Their Belts

16 September 2021

ELECTRICITY consumers in the Erongo region are tightening their already squeezed budgets to accommodate new electricity tariffs.

This is after the regional electricity distributor Erongored increased its tariffs by 1,7%.

Erongored's chief executive officer, Fessor Mbango, announced the increase at Walvis Bay on Tuesday.

The new tariff has been approved by the Electricity Control Board (ECB) for the 2021/2022 financial year.

This is after the ECB approved an average tariff increase for NamPower from N$1,65 to N$1,69 per kilowatt-hour for the 2021/2022 financial year.

Mbango said the increase constitutes a weighted average increase of 2,92% for Erongored.

"The actual impact on Erongored is 3,6%. It is worth mentioning that NamPower's tariff forms the baseline for Erongored's tariff increase, as it is the biggest expenditure. Thus, any increase in NamPower's tariffs affects our customer tariffs," he said.

Mbango said the ECB's statutory levies remain unchanged for a period of 12 months.

The National Energy Fund's levy remains unchanged as the Ministry of Mines and Energy has not pronounced themselves on it yet, he said.

Mbango said the company has resolved that pensioners will continue to enjoy zero basic charges up to 40A circuit breakers, and that installation of prepaid meters are free.

Other resolutions taken by the company include special tariffs for defaulting customers on 20A circuit breakers.

These customers will be charged on the inclining block-tariff structure, with the first monthly 100 units charged at a low rate.

"Prepaid customers above 20A connections will continue on the flat-tariff structure. Customers in this category will be charged the same rate throughout the month. We have also decided to continue with the free prepaid meter project for pensioners and customers who are on debt management only," Mbango said.

Erongored currently subsidises over 10 595 customers, comprising pensioners and defaulting customers.

Erongored chief executive officer Fessor Mbango.

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